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Xiaomi Corp. Unsponsored ADR Class B (XIACY)
OTHER OTC:XIACY
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Xiaomi Corp. Unsponsored ADR Class B (XIACY) AI Stock Analysis

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XIACY

Xiaomi Corp. Unsponsored ADR Class B

(OTC:XIACY)

Rating:73Outperform
Price Target:
$37.00
▲(2.52% Upside)
Xiaomi Corp. demonstrates strong financial performance and positive earnings call highlights, which are the most significant factors driving the stock score. However, the technical analysis and valuation suggest caution due to mixed momentum signals and a relatively high P/E ratio. The absence of a dividend yield also impacts the valuation negatively.

Xiaomi Corp. Unsponsored ADR Class B (XIACY) vs. SPDR S&P 500 ETF (SPY)

Xiaomi Corp. Unsponsored ADR Class B Business Overview & Revenue Model

Company DescriptionXiaomi Corporation, an investment holding company, provides hardware, software, and internet services in Mainland China, India, Europe, and internationally. It operates through Smartphones, IoT and Lifestyle Products, Internet Services, and Others segments. The Smartphones segment sells smartphones. The IoT and Lifestyle Products segment offers smart TVs, laptops, AI speakers, and smart routers; various IoT and other smart hardware products; and lifestyle products. The Internet Services segment provides advertising services and internet value-added services; and engages in the online game and fintech businesses. The Others segment offers hardware repair services for its products. The company also engages in the wholesale and retail of smartphones and ecosystem partners' products; development and sale of software, hardware, and electronic products; procurement and sale of smartphones, ecosystem partners' products, and spare parts; procurement of raw materials; and operation of retail stores. It is also involved in the research and development of computer software and information technology; property management and commercial factoring activities; e-commerce and market research businesses; sale of e-books; investment, asset management, project investment, property management, and investment consulting, as well as technology diffusion, transfer, and consulting activities; and provision of internet finance, consumer loan, virtual banking, software related, information technology advisory, electronic payment, and internet services. Xiaomi Corporation was incorporated in 2010 and is headquartered in Beijing, the People's Republic of China.
How the Company Makes MoneyXiaomi makes money primarily through the sale of its electronic devices, with smartphones being the largest revenue contributor. The company employs a cost-effective business model that focuses on high-quality, affordable products, which helps it capture a significant share of the global smartphone market. In addition to hardware sales, Xiaomi generates income through its internet services segment, which includes online advertising, gaming, and fintech services. The company's ecosystem of IoT and lifestyle products also contributes to its revenue, as it leverages its brand and distribution network to sell a wide range of connected devices. Xiaomi maintains strategic partnerships with various technology and retail companies to expand its market reach and enhance its product offerings, further driving its revenue growth.

Xiaomi Corp. Unsponsored ADR Class B Earnings Call Summary

Earnings Call Date:Aug 19, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 24, 2025
Earnings Call Sentiment Positive
Xiaomi's earnings call highlighted significant achievements in revenue growth, market leadership in smartphones, and advancements in AIoT and EV sectors. However, challenges in smartphone gross margins and intense industry competition were noted. Overall, the positive aspects of Xiaomi's growth and innovation efforts significantly outweighed the challenges.
Q2-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
In the second quarter of 2025, Xiaomi achieved record revenue of RMB 116 billion, up 30.5% year-on-year, marking the fifth consecutive quarter of record-breaking performance. Adjusted net profit reached RMB 10.8 billion, up 75% year-on-year.
Smartphone Leadership
Xiaomi ranked among the top 3 globally in smartphone shipments with a market share of 14.7%. In Mainland China, Xiaomi ranked first in smartphone sales, and significant market share gains were noted in regions such as Southeast Asia, Europe, and the Middle East.
Strong AIoT Performance
AIoT revenue reached a record high of RMB 38.7 billion, up 44.7% year-on-year. The AIoT division showed strong growth in both China and overseas markets, benefiting from channel expansion and new retail system building.
Home Appliance and EV Growth
Large appliance business revenue grew over 60% year-on-year, with notable increases in air conditioning and washing machines. Xiaomi delivered 81,302 new EVs in Q2, with significant growth in the automotive sector.
Advancements in Technology and Innovation
Xiaomi launched its first self-developed 3-nanometer flagship chip and successfully integrated it into market products. The company also made strides in AI, launching the Xiaomi MiMo-VL/7B model and showcasing advancements in AI glasses.
Inclusion in Fortune 500
Xiaomi was included in the Fortune 500 list for the seventh consecutive year, ranking 297th, an improvement of 100 places from last year.
Negative Updates
Smartphone Gross Margin Pressure
Despite growth in smartphone shipments, Xiaomi faced challenges with smartphone gross margin due to rising costs, particularly in the low to medium-end segments, and a limited number of new product launches in the first half.
Intense Industry Competition
The mobile phone industry has entered a mature phase with little overall growth, leading to intense competition among the top brands and contributing to price wars in the market.
Challenges in Premiumization Strategy
Xiaomi's efforts in premiumization faced challenges with costs increases and market competition, affecting short-term gross margins in the smartphone segment.
Company Guidance
During the Xiaomi 2025 Interim Results Announcement Investor Conference Call, significant financial metrics were highlighted, reflecting the company's robust performance. For the second quarter of 2025, Xiaomi reported a total revenue of RMB 116 billion, marking a 30.5% year-on-year increase, with a gross margin of 22.5%, up by 1.8 percentage points. The adjusted net profit soared to RMB 10.8 billion, representing a 75% year-on-year growth. Xiaomi maintained its top three global position in smartphone shipments, capturing a 14.7% market share. The company also saw a notable performance in its AIoT division, which reported a revenue of RMB 38.7 billion, up 44.7% year-on-year, and its Smart EVs and AI division generated RMB 21.3 billion in revenue. Their R&D expenses reached RMB 7.8 billion, a 41.2% increase, emphasizing Xiaomi’s commitment to innovation. The IoT segment, especially in air conditioning, experienced a 60% year-on-year shipment growth, showcasing Xiaomi's strategic focus on expanding its home appliance market.

Xiaomi Corp. Unsponsored ADR Class B Financial Statement Overview

Summary
Xiaomi Corp. exhibits strong revenue growth of 9.76% and maintains robust profit margins. The balance sheet is healthy with a low debt-to-equity ratio and solid return on equity. Cash flow management is effective, with notable increases in free cash flow, supporting its growth and operations.
Income Statement
85
Very Positive
Xiaomi Corp. shows strong revenue growth with a TTM of 9.76% over the previous year. The gross profit margin is robust at 21.18%, and the net profit margin is strong at 7.57%. Notably, EBIT and EBITDA margins are healthy at 8.45% and 8.22% respectively. The company demonstrates consistent growth and profitability in the competitive consumer electronics industry.
Balance Sheet
78
Positive
The balance sheet reflects solid financial health with a low debt-to-equity ratio of 0.13, indicating conservative leverage. The return on equity is impressive at 12.69%, and the equity ratio is strong at 53.20%, showcasing financial stability and efficient capital management. The company maintains a robust equity position relative to its assets and liabilities, mitigating financial risk.
Cash Flow
82
Very Positive
Operating cash flow is strong, with a notable increase in free cash flow growth rate of 50.39% over the previous year. The operating cash flow to net income ratio is 1.75, indicating efficient cash generation relative to income. The free cash flow to net income ratio is high at 1.58, reflecting solid cash profitability. Overall, cash flow management appears effective, supporting growth and operations.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue365.91B270.97B280.04B328.31B245.87B
Gross Profit76.56B57.48B47.58B58.26B36.75B
EBITDA29.49B28.40B8.77B30.32B26.71B
Net Income23.66B17.48B2.47B19.34B20.36B
Balance Sheet
Total Assets403.16B324.25B273.51B292.89B253.68B
Cash, Cash Equivalents and Short-Term Investments101.77B107.83B67.78B86.17B95.53B
Total Debt36.01B29.83B26.06B30.68B18.48B
Total Liabilities213.95B159.99B129.58B155.46B129.67B
Stockholders Equity188.74B164.00B143.66B137.21B123.69B
Cash Flow
Free Cash Flow32.00B35.03B-10.19B2.62B18.85B
Operating Cash Flow39.30B41.30B-4.39B9.79B21.88B
Investing Cash Flow-35.39B-35.17B15.55B-45.01B-17.68B
Financing Cash Flow-4.00B-504.97M-7.85B4.50B26.22B

Xiaomi Corp. Unsponsored ADR Class B Technical Analysis

Technical Analysis Sentiment
Positive
Last Price36.09
Price Trends
50DMA
35.22
Positive
100DMA
34.08
Positive
200DMA
30.14
Positive
Market Momentum
MACD
0.16
Negative
RSI
60.73
Neutral
STOCH
64.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XIACY, the sentiment is Positive. The current price of 36.09 is above the 20-day moving average (MA) of 34.18, above the 50-day MA of 35.22, and above the 200-day MA of 30.14, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 60.73 is Neutral, neither overbought nor oversold. The STOCH value of 64.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XIACY.

Xiaomi Corp. Unsponsored ADR Class B Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$3.53T36.16149.81%0.44%5.97%0.15%
78
Outperform
$173.45B22.5814.70%0.42%-4.41%18.04%
73
Outperform
$179.18B34.4517.46%39.12%94.84%
61
Neutral
$35.83B9.00-10.39%1.87%8.46%-7.85%
61
Neutral
$239.62M-76.81%-19.83%73.22%
57
Neutral
$4.29B-9.31%3.97%72.99%
54
Neutral
$718.12M-28.36%-18.94%-197.82%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XIACY
Xiaomi Corp. Unsponsored ADR Class B
36.09
24.12
201.50%
AAPL
Apple
234.35
15.26
6.97%
GPRO
GoPro
1.67
0.41
32.54%
LPL
LG Display
4.39
0.66
17.69%
SONY
Sony Group
28.71
10.17
54.85%
ZEPP
Zepp Health
50.94
47.77
1506.94%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 23, 2025